The Cabinet Committee on Economic Affairs chaired by Prime Minister Shri Narendra Modi has approved an additional investment of USD 1,600 million (about Rs. 12,000 crore) by Bharat PetroResources Ltd. (BPRL), a wholly owned subsidiary of Bharat Petroleum Corporation Limited (BPCL) for development of BM-SEAL-11 Concession Project in Brazil.
The CCEA also approved following:
- To increase in the limit of equity investment by BPCL in BPRL and Authorised Share Capital of the Company from Rs.15,000 crore to Rs.20,000 crore (to be subscribed by BPCL from time to time).
- To authorise increase in the limit of equity investment by BPRL International BV in International BV Brasil Petroleo Limitada, through intermediate WOS, to Rs.15,000 crore from the current limit of Rs.5,000 crore that is an increase of Rs.10,000 crore
The start of production from BM-SEAL-11 project is expected from 2026-27.
This will help in:
- accessing to equity oil to strengthen India’s energy security.
- diversifying India’s crude oil supply and Indian oil companies have expressed interest in sourcing more crude oil from Brazil.
- Strengthening India’s foothold in Brazil, which will further open business avenues in neighbouring Latin American countries.
- Further strengthening the bilateral ties between the countries.
BPRL has 40% Participating Interest (PI) in this Concession along with Petrobras, National oil company of Brazil, as the Operator with 60% Participating Interest.
BPRL has been associated with exploration and development of this project in Brazil since 2008.